The Marzetti Company (MZTI)
Cash conversion cycle
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 42.52 | 48.47 | 41.95 | 49.01 | 43.93 | 40.67 | 39.83 | 44.44 | 40.28 | 39.60 | 36.58 | 44.95 | 39.99 | 48.26 | 47.71 | 51.45 | 41.18 | 36.76 | 39.77 | 40.85 |
| Days of sales outstanding (DSO) | days | 18.32 | 20.67 | 19.05 | 19.74 | 18.63 | 19.99 | 19.59 | 23.58 | 23.02 | 26.17 | 26.34 | 29.08 | 29.50 | 24.97 | 24.46 | 26.20 | 24.36 | 25.48 | 23.38 | 26.29 |
| Number of days of payables | days | 29.62 | 30.70 | 26.23 | 27.64 | 30.13 | 30.43 | 26.22 | 30.08 | 28.45 | 35.43 | 34.56 | 36.67 | 31.78 | 37.02 | 39.29 | 41.51 | 37.28 | 33.65 | 32.11 | 32.23 |
| Cash conversion cycle | days | 31.21 | 38.45 | 34.77 | 41.11 | 32.44 | 30.24 | 33.20 | 37.95 | 34.86 | 30.34 | 28.37 | 37.36 | 37.72 | 36.21 | 32.88 | 36.14 | 28.25 | 28.58 | 31.03 | 34.91 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 42.52 + 18.32 – 29.62
= 31.21
The analysis of The Marzetti Company's cash conversion cycle (CCC) from September 2020 through June 2025 reveals notable fluctuations in both operational efficiency and liquidity management over the examined period.
Initially, the CCC decreased from approximately 34.91 days in September 2020 to a low of 28.25 days recorded in June 2021, indicating an improvement in the company's ability to convert investments in inventory and receivables into cash more rapidly. This trend suggests enhanced operational efficiency during this interval, potentially attributable to effective inventory and receivables management.
However, starting from September 2021, the CCC experienced an upward trajectory, reaching a peak of approximately 37.95 days by September 2023. This increase reflects a lengthening of the overall cycle, which could be due to several factors such as longer receivable collection periods, extended inventory holding times, or delays in the payables process. Such a trend could strain working capital and diminish liquidity.
In the most recent periods, there has been some variability. The CCC decreased to around 33.20 days at the end of 2023 but then rose again to approximately 41.11 days in September 2024. This notable increase suggests potential operational or strategic changes affecting cash conversion efficiency, possibly including extended credit terms, inventory buildup, or supply chain disruptions.
Subsequent quarters indicate a partial reversal, with the CCC decreasing to about 34.77 days in December 2024 and further to approximately 31.21 days in June 2025. Despite this improvement, the cycle remains somewhat elevated relative to the earlier low points, implying ongoing challenges in maintaining optimal cash conversion efficiency.
Overall, the company's cash conversion cycle exhibits periods of improvement interspersed with phases of elongation. The recent upward trend up to September 2024 highlights potential liquidity management concerns, whereas the subsequent reduction indicates efforts toward normalization. Continuous monitoring of these fluctuations is essential for assessing operational performance and liquidity strategies over time.
Peer comparison
Jun 30, 2025